Sam MacPherson, Founder,

The Lean Leadership Academy™

(910) 217-LEAN

Twitter @LeanLeaderWay

What We Will Cover Today

• What is an Obeya

• Obeya as Lean Culture Accelerator

• Obeya as a Leadership Development Platform

• Types of Obeya in Toyota

• How to Get Started

• Organize for Flow and Connections

• Your Questions

What is an Obeya?

BIG ROOM

A Room with a View

• The Obeya, or “The Big Room”, dates back to its early days of Toyota, in Japan.

• Toyota’s Corporate HQ in Japan are large open office areas without the isolationism created by offices and cubicles.

The Universe’s Most FamousObeya

The bridge of the Starship Enterprise

is an Obeya

NASA’s Johnson Control Centeraka “Houston”

Another Famous Obeya

My Background with Obeya’sThe Green Beret Way

Because of the complexity of Special Operations missions, the need for

Situational Awareness, Coordination, and Collaboration, Special Operations

Units have been using the Obeya approach for years. Our Obeya are known as

Operations Centers.

FocusObeya Focus

Obeya

FocusObeya

TMCGlobal Obeya

Focus Obeya Floor Mgmt &

Development Team Problem

Solving Jishuken(Mgmt Study Group) Dept. Hoshin

Business Obeya

(Executive offices)

Business Process Layout ObeyaDaily Management, target setting, trend analysis, priority setting and action planning, status review

Global ObeyaWhen developing a new vehicle, managers responsible for decision making in design, production engineering, and manufacturing gather in one place to shorten lead-time through real-time communications & simultaneous engineering

Business Obeya

(Engineering)

Business Obeya(Mfg.)

Business Obeya(Sales)

Types ofObeya

Global Camry Launch

TMM Australia

Toyota University

An Obeya for Every Level

Toyota FMDS Team Room

Toyota Industrial Equipment

Mfg (TIEM) Operation

Obeya

The Theory behind Obeya is Based on a Simple Idea

“Dedicate Space and Time to Coordination and Problem-Solving, then organizational barriers will

be minimized.”

Why Establish an Obeya?

Quick! What do you Notice First?

Understanding the ObeyaManagement Principles

Management

By Objective

=

Command

&

Control

Management

By Exception

=

Focus on Problem Solving

the Ideal Situation

And the Current Situation

versus

Because, there is Always Room for

In Communication and Collaboration!

Obeya Accelerates Lean Culture

Transformation

Obeya Provides a Platform for Social Networking

Humans are Hardwired to Socialize

Obeya Accelerates Lean LanguageWhich Accelerates Lean Culture

Obeya and Building a Lean Culture

“Every time we get together, in the Obeya, and speak the language of the Toyota Way, practice our routines for daily

planning, management, and problem solving, gather to hold each other accountable to our shared expectations, or share our reflections and learnings, as leaders, we are creating our Lean Culture. Then, as leaders, we take that culture to the

Genba.”

Obeya Accelerates LeaderDevelopment

Obeya and Lean Leadership

“TPS style (LEAN) improvement depends on the creative efforts of people led by managers and work team leaders with extreme attention to detail in the execution of daily management techniques.”

-Isao Kato: Father of Standardized Work and Toyota’s Supervisor Leadership Development Program

We Wait Too Long to Train our Leaders

* “We Wait Too Long to Train Our Leaders”

Jack Zenger

Harvard Business Review, DECEMBER 17, 2012

The Elephant in the RoomThe Current State of Lean Leader

Development

Many Lean Leaders are left to

Figure it out on their on

Obeya Must Support Just in Time and Jidoka

‘I think the ideal situation of the Obeya should be the full integration of People and Information and it must mimic the flow of the Value Creation and Delivery Processes.

The Obeya must utilize the most effective technology of to support human communi-cation to promote fuller collaboration.

Information must support the TPS pillars of ‘Just in Time’ (right information, right amount, right place, right time) with Jidoka’s“Zero Defects Passed” expectations.’

Casey Ng

Retired General

Manager

Toyota Motor

Manufacturing

Australia

And Camry Global

Launch

Obeya Leader

Where Should I Start?

“Good Thinking; Good Products”

“Brilliant process management is our strategy. We get brilliant results from ordinary people managing brilliant processes. We observe that our competitors often get ordinary or worst results from brilliant people managing broken processes.”

- Fujio Cho

How to Build Your “Big Room”A Phased Implementation

Approach for Your House of Lean

Just-In-Time“Right part, right

amount, right place,

right time”

Jidoka“Intelligent Automation”

“Quality from the Source”(In-station Process Control)

“Make Each Process

The Customer”

“Make Problems Visible”

“Stop and notify about

Abnormalities”

“Error-Proof”

“Separate Man from

Machine”

Leveled Production (heijunka) Kaizen Standardization

Stability and Reliability in Man, Machine, Methods, Materials

Takt-time:

Produce at the Pace of

Sales

“Continuous Flow”

“Pull System”

In sequence of demand

Small lot sizes, frequent

Change-overs

Obtain a Profit and Grow by Increasing Customer Value

Through the Elimination of Waste, Burden, and Fluctuation

Highest Quality - Lowest Cost - Shortest Lead Time

Phase 1 Obeya• Process Stability• Work and Process

level Problem Solving

• Work Standards• Schedule

AttainmentFocus

Phase 3 Obeya• Full SQDCPM• Organizational

Problem Solving• A3 Management

Phase 2 Obeya• Level Production• Flow Focus• Standardized

Work• TPM Integration

Phase 4 Obeya• Deployment Focus• TPS Integration • External

Connections• Full SQDCPM

Phase 5 Obeya• Full Hoshin

Integration• Sales Obeya• Engineering

Obeya

Start with Visual Management for

each level of the House of Lean.

As you mature each level of “The House,” the

nature of the Obeya

Evolves and Transforms.

How Should I LayoutOur Obeya for Flow?

It Depends…

Hoshin KanriStrategy Deployment and

Management Obeya

Obeya for Hoshin Kanri At ToyotaFrom the Boardroom to the Genba

Toyota (TIEM)

Hoshin Vision

Toyota

Hoshin Strategy

Deployment

Obeya

Toyota

Hoshin Management

By Department

Toyota

Hoshin Management

Daily Operations

Toyota

Hoshin Management

By Shift through

Floor Management

& Development System

Visualization of the VisionIn Toyota’s Hoshin Obeya

The Toyota “T” Approach“Mile Wide-Inch Deep; Inch Wide-Mile Deep”

Process by Process Hoshin Targets for “Customer First” Value Creation Business Process Flow

Bu

sin

ess

Pro

cess

Tre

nd

s, G

aps,

An

alys

is,

Pla

ns,

Act

ion

s, a

nd

Res

ult

s

HoshinTarget

“GTS”Customer

First Trends

Analysis &

Plans

Actions &

Status

Results Tracking

Toyota Hoshin Connection in theBusiness Process Obeya

GTS-PDCA Tree by Business Process or Area

Toyota Operations Obeya

Funnel/HopperGTS-PDCA Flow

Toyota’s Floor Management and Development System Obeya

Connects the Hoshin to the Genba

Funnel GTS-PDCA Flow Down

S

KPI’s

D L C P MQ

Sub KPI’sTrends

HoshinInitiative

Plan

Top 5Issue

IssueBreakdown

Activity

• Directly Link to Hoshin Plan Objectives• State Clear Targets• Articulate a compelling need (The Big So What): Why must we do this; what if we don’t?• Articulate Key Hoshin Initiatives

• Breakdown Main KPI’s to Sub-KPI level• Clear Visual Goals and Targets • Annotate Spikes/Deviations

• Breakdown Gap to Goal/Target• Cascade Breakdown of Gap• AQD Drill-down of trends to the Pareto Level

ResultTracking

• Breakdown Lean Transformation Objectives (i.e., move from Bronze level to Silver level)• Breakdown “High Hanging Fruit” type Problems to the 4-5th Why level• AQD Drill-down to decision support levels

• Define or Hypothesize Expected Outcomes of Activities • Following TWI format, breakdown Activities to Major Tasks• Following TWI format, breakdown Major Tasks to Key Actions

• Track Progress against target expectations• Track Countermeasures for a period of 90 Days to confirm recurrence prevention• Ensure Yokoten

Business Process Obeya:Operational Hoshin Accomplishment

and Daily Management

Operations CenterObeya Model

Equ

ipm

en

t Re

liability

(Fix it Righ

t)

Gemba Kanri Plans For Zones and Value Streams

TPM

Ad

vance

men

t Plan

Quality Advancement Plan(Do it Right)

Voice of the CustomerQuality Delivery Price Service Innovation Growth

Safety Quality Delivery Cost Productivity Morale

Dashboard

Current Operations Production Status Board“Yamazumi Board”

Management Cadence Kami Shibai Visual Control Board

Hoshin , Kojo, and Baby A3 Plans

Dispatcher Operations

Join

t Sa

les

and

Pro

du

ctio

n

(JSP

) Te

am P

lan

nin

gC

ou

nte

rmea

sure

P

rogr

ess

ion

(P

DC

A)

30

/60

/90

Day

M

aste

r S

che

du

le1

0-1

0-1

0 D

ay M

aste

r M

on

th S

ched

ule

10

day

th

ree

day

ou

t B

reak

do

wn

Sch

ed

ule

AN

DO

NStatu

s

Culture: Create the Obeya Habit“Management Cadence as a Routine”

7:00 am Shift Start ‘Hot Start’ Stand-up Meeting:- Start-up Condition “No Cold Starts!”- Set Priorities and gain alignment- Leader Daily Top 5- Problem Solving Cadence Report

9:00 am: Level Production Planning Team Meeting:- 3 Day-out Planning- 10 Level Loading

11:30 am: ‘Mid Day’ Huddle:- “On Track to Target?”- “Prioritize Gap Closure”- Collaboration and Support- Problem Solving Cadence Report

3:00 pm: ‘Plan For Every Part or Process” Meeting:

4:00 pm: End of Day Review:- Schedule Accomplishment (Green/Red)- A3 Report-out (Problem Solving, Proposal, and Status) and

- System PDCA Review Briefing- Leader Top 5 Review (Green/Red)- Plan for Every Person Development PlanPlanning Reflections (Hansei)

Cue

Daily Mgmt

Routine

RewardGreen

OrRed

Master Schedule PDCA Flow

Strong Cross-functional Master Scheduling Team meets daily in the Obeya

Visual 30-60-90 Day JIT Demand Planning

Monthly 10-10-10 Day Level Production Master Scheduling Plan (aka Heijunka)

Establishes 10 Day Day-by-Day Plan

Confirms “3 Day Out” Line Off Plan

The Ability to See Trends in Demand

A-B-C Demand Analysis and Demand Variation analysis

Level Schedules according to “Every-Part; Every Interval planning rules

Obeya and Timeline Control

Flow in the Lean Enterprise Business Process Obeya

Obeya Visual Management of

Value Streams:

Daily Management of the

Enterprise follows and monitors the

Expected of flow of Information,

Material, Talent and Resources.

There are no static displays.

Leaders “touch” all activities and act

on anything that does not flow as

expected.

Obeya is a “Whole Brain” Center and Helps to Create a

Kaizen Mind

Obeyaand the Kaizen Mindset

“Having (a) proper awareness of problems and an extremely low tolerance for the current condition

is a proper attitude.”

-Isao Kato: Father of Standardized Work and Toyota’s Supervisor Leadership Development Program

The Benefits of Implementingthe Obeya System

• The Obeya promotes coordination, strategy and flexibility while leveraging the expertise and support of teammates from diverse areas.

• The Obeya promotes the Full and Effective utilization of Resources and Talents in order to reach our full potential, which is critical to a Lean Organization

• The ability to maintain Proper Problem Awareness in Real-time:– Monitor Value Creation, Flow of Value, and Opportunities for our Customers,

Partners, Stakeholders, Team-members, and our Organization.

– Listen to Team-member concerns.

– Collaborate to make discoveries, resolve problems together, accelerate leader and team-member development

– Accelerates Leader development

– Accelerates Lean Culture development and deployment

The Result:

Effective solutions and actions that can be developed and implemented quickly.

And

Value can be delivered with Velocity.

The Benefits of Implementingthe Obeya System

Focus Your Obeya Activitiesto Remove Burden and Problems

Solving

Thank You For Allowing Me to Share

What Questions Can I Answer for You?